Exam 11: Pricing Products: Pricing Strategies

Refer to the scenario below to answer the following questions. Pilot is a manufacturer of ballpoint pens, pencils, and stationery. The firm's primary distribution strategy is to sell in large volumes to office supply stores and large discount chains. Iwao Takada, CEO of Pilot, had hoped to manufacture and sell in large enough quantities that prices could be held low. However, in the first several months, the firm experimented with the price portion of its marketing mix in an effort to cater to a number of markets. -Why might Iwao Takada have avoided using market-skimming pricing at Pilot?

Price discrimination is legal under which of the following conditions?

Describe the differences between dynamic and fixed pricing.

Which of the following is NOT a geographical pricing strategy?

Bose prices its most expensive noise reduction earphones at $399.95,which is a full $100.00 more than its next most expensive earphones.It costs Bose only a few dollars more to make the most expensive earphones.Bose is using ________ pricing.

Give two examples of products for which marketers may use optional-product pricing.

Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing.Distinguish between the two.

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

If a large retailer sold numerous items below cost with the intention of punishing competitors and gaining higher long-run profits by putting those competitors out of business,the retailer would be guilty of ________.

When Asia Electronics sets its televisions at three price levels of $699,$899,and $1,099,it is using ________.

________ results when a company uses pricing methods that make it difficult for consumers to understand just what price they are really paying.

Stylish Bamboo manufactures bamboo floorings.In the process of production,the company generates a great deal of scrap bamboo.Which pricing mix strategy should Stylish use,and how does it function?

The strategy for setting a product's price changes when the product is part of a product mix.

Your company may respond to a competitor's price reduction by launching a low-price fighting brand.This is likely necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality.

List four types of segmented pricing.

A quantity discount is a price reduction to buyers who purchase ________.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Big Mike's Health Food Store sells nutritional energy-producing foods.The price of the products sold varies according to individual customer accounts and situations.For example,long-time customers receive discounts.This strategy is an example of ________.

The flexibility of the Internet allows companies to use ________.

Consumers usually perceive higher-priced products as ________.